Can I have a cash ISA and a stocks and shares ISA at the same time?

Full answer

Before April 2024, the rule was that you could only subscribe to one ISA of each type in any given tax year -- one cash ISA, one stocks and shares ISA, one Lifetime ISA, and so on. You could hold multiple ISAs from different providers, but only pay new money into one of each type per year. From 6 April 2024, HMRC changed the rules and now allows multiple subscriptions to ISAs of the same type in one tax year. This means you can pay into two cash ISAs, or two stocks and shares ISAs, or mix and match any combination, as long as the total of all subscriptions across all ISA types does not exceed £20,000 in the 2026/27 tax year. The change makes it easier to take advantage of competitive rates without being locked to a single provider. For example, you might split your £20,000 allowance between a high-interest cash ISA for your emergency fund and a stocks and shares ISA for long-term growth, both opened in the same tax year. The Lifetime ISA remains subject to its own cap of £4,000 per year, which counts toward the £20,000 overall limit, and carries the 25% government penalty on withdrawals outside qualifying circumstances. Junior ISAs are completely separate with their own £9,000 allowance. The £20,000 limit includes all subscriptions to all ISAs you hold, whether or not they are from previous years. Transfers between existing ISAs do not count against the allowance. Use an ISA calculator to plan how to spread your £20,000 across different ISA types to match your financial goals.

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Related guides

• Isa Types Explained

More answers

• What is a flexible ISA in the UK?
• What is the new ISA multiple subscription rule from April 2024?